[K-Women Talk] Addressing Blind Spots Is More Important in Responding to Low Birth Rates

Work-Family Balance Policies Focused on Corporate Employees
Non-Regular Workers and Self-Employed Families Left Behind

An early presidential election is approaching. Around this time, each political party puts forward a variety of policy alternatives addressing social issues. As the most pressing issue in our society is the population problem caused by low birth rates, many proposals related to this issue are likely to be presented. It was in 2018 that South Korea's total fertility rate fell below 1.0.

The total fertility rate, which has been hitting record lows every year, fortunately increased slightly last year. In 2024, the total fertility rate rose to 0.75, an increase of 0.03 from 0.72 in 2023. However, it is still difficult to predict whether this will lead to a rebound or whether the rate will decrease again.

Some claim that the slight increase in the 2024 fertility rate is the result of the effectiveness of previous low birth rate policies. However, there is also a skeptical view that this is because the so-called Echo Generation (those born between 1979 and 1992), who are the children of the baby boomer generation (1955-1963) and number around 9.5 million, have now entered the prime ages for marriage and childbirth, making it difficult to expect a continuous rise in the fertility rate. In any case, it should be acknowledged that the low birth rate policies have had some effect, and such efforts must continue in the future.

However, it is important that the government's work-family balance policies in response to low birth rates focus more on effectiveness and fairness. Until now, the government's work-family balance policies have been centered on employees affiliated with companies, funded by employment insurance. Through various elections, both the duration of parental leave and the level of benefits have been continuously expanded. After the last presidential election, the parental leave period was extended from a combined two years for both parents to three years.

In fact, in terms of duration, South Korea's parental leave is among the longest in the world. It is even longer than Sweden, which is often cited as a model for parental leave. In Sweden, parents are entitled to a combined 16 months per child. Of these, three months must be used by either the mother or the father; if one parent does not use their portion, only 13 months are granted. This is why Sweden has what is called a "papa quota" of three months. In South Korea, the equivalent "papa quota" is one year. By law, employers are required to grant one year of parental leave to each employee (or 1.5 years each if both parents use it), making the actual "papa quota" one year. Furthermore, teachers and public officials are entitled to three years of parental leave per child.

On the other hand, there are people who fall into a blind spot when it comes to parental leave. Small business owners and platform freelancers are not considered employees and are broadly categorized as self-employed, so there is no employer to grant them parental leave. Not long ago, I read an article about a working mother who runs an eyebrow salon while raising her 22-month-old son. She lamented, "When employees take time off, they earn zero, but for the self-employed, it's a loss," because expenses such as rent must still be paid.

In advanced countries, childcare support is provided not only to employees but to all working parents. In South Korea, families raising children aged 0 to 1 receive cash benefits ranging from 500,000 to 1,000,000 won. However, there is no support for self-employed parents who cannot work while raising their children. If income is interrupted due to marriage or childbirth, some may end up giving up on having children.

Recently, the labor market has seen an increase in small business owners and platform or freelance workers rather than regular employees. As companies' capacity to hire declines and the digital economy spreads, this trend is expected to accelerate. Therefore, in addressing low birth rates, rather than simply extending the already world-leading duration of parental leave, prompt measures must be taken for working parents in these blind spots. Reducing the gap between beneficiaries will also help alleviate polarization.

Kim Kyungsun, former Vice Minister of Gender Equality and Family